https://www.i-scholar.in/index.php/Microfinance/issue/feed The Microfinance Review 2023-04-04T10:47:34+00:00 Shri Shankar A. Pande, Director, BIRD shankar.pandey@nabard.org Open Journal Systems <p>THE MICROFINANCE REVIEW is an half yearly journal published by Centre for Research on Financial Inclusion and Microfinance (CRFIM), set up within Bankers Institute of Rural Development (BIRD) Lucknow, a premier training establishment promoted by NABARD. It is the only journal in India exclusively deals with microfinance and financial inclusion sector in the country and abroad. The journal publishes peer-reviewed articles and research papers, supported by EPW Research Foundation, Mumbai. <br /> <br />Aims and objectives of the Journal is to promote studies on issues related to the microfinance and financial inclusion sector in India and abroad in order to sensitise the policy makers, donors, researchers and others who are associated with the sector. The journal proposes to identify key problems and encourage debate in the microfinance sector on issues such as socio-economic empowerment, institutional arrangements and innovations in microfinance and financial inclusion products with special focus on rural clients.</p> https://www.i-scholar.in/index.php/Microfinance/article/view/220014 Business Correspondent Model and its Contribution to Microfinance Sector of India 2023-04-04T10:47:34+00:00 Saibal Paul saibalpaul@sa-dhan.org It is now widely acknowledged that microfinance sector has had a positive impact on poverty reduction and women empowerment. The growth of the sector is powered by the business correspondent (BC) model. Using secondary data, this article makes an attempt to give an overview of how microfinance institutions (MFIs) acting as BCs partner with banks and other financial institutions. Though BC partnership with banks had flourished, lately they tend to shift towards non-banking financial companies. The paper also discusses the major challenges that MFIs face as BCs and the ways to overcome. This paper argues that the Reserve Bank of India has a larger role to play in harnessing the orderly growth of MFIs as BCs in the country. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220015 Role of Regional Rural Banks in Deepening Financial Inclusion in India 2023-04-04T10:47:34+00:00 S. K. Pandey sunil.pandey@nabard.org Banking sector plays a key role in the economic development of a country especially a developing country like India. Banks act as lubricants for the entire economy in general and the monetary and financial system in particular. Since a large section of the Indian population lives in rural area, their participation in economic activities is a perquisite for the overall development of the country as a whole. There is a need for robust banking system in rural areas, which not only provides them safe and cost-effective avenue to keep their money but also provides affordable and timely credit for their livelihood activities largely revolving around agriculture and allied sectors. Based on the recommendations given by the Narasimhan committee, the regional rural banks (RRBs) were established as low cost institutions to serve the rural economy by providing credit to farmers particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs for agriculture, and other productive activities in the rural areas. This article tries to understand the importance of banking system in rural areas and the role played by the banking system in supporting sustainable rural livelihoods and prescribe recommendation for the resolution of the issues faced by RRBs. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220016 Factors Influencing Usage of <i>RuPay</i> Kisan Credit Card by Farmers : An Assessment 2023-04-04T10:47:34+00:00 Tamanud Ghosh ghosh.tamanud@gmail.com The Kisan Credit Card (KCC) is the single largest credit product for crop cultivation in the country. The scheme was introduced in 1998 to address the financial requirements of farmers at various stages of farming. Over the period, the scheme has been modified with more add-on features to cater to the comprehensive credit needs of farmers in a hassle-free and cost-effective manner. In 2012, the scheme was modified to facilitate KCC holders by issuing debit cards, which could be used by farmers anytime and anywhere to access the KCC loan without visiting bank branches. Despite issuing such debit cards, the usage of cards among the farmers remains poor, and most of them used it a single time in a year. The present paper attempts to assess the factors associated with the usage of the <em>Rupay</em> Kisan Credit Card (RKCC) among the farmers, based on a survey of 895 farmers spread across 12 districts in six states. The paper used a binary logistical regression model to assess the factors influencing the usage of RKCC. The paper finds that being a small and medium farmer having multiple sources of income, and being a semi-matured client are all positively associated with decision of using RKCC. In contrast, being male farmer with a marginal land holding and being a mature client are negatively associated with using RKCC. The paper recommends: (i) building awareness amongst farmers by utilising community-based organisations, media platforms, etc; (ii) creation of infrastructure in rural and semi-urban areas so as to facilitate debit card transactions; and, (iii) utilisation of the services of business correspondent agents to offer doorstep withdrawal services for RKCC. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220017 Study of Change in Livelihood Status of Self-Help Groups Established during JICA Phase - II in Gujarat 2023-04-04T10:47:34+00:00 T. Navin navin.t@ilrtindia.org Since the emergence of self-help group (SHG) movement, its importance has only grown. SHGs have been integrated into different development programmes. They are part of the livelihood enhancement programmes of National Rural Livelihood Mission (NRLM) and State Rural Livelihood Missions (SRLMs). Many donors, multi-lateral organisations and state agencies insist on formation and development of SHGs. The National Bank for Agriculture and Rural Development (NABARD) has also been encouraging SHG formation and SHG-bank linkage throughout the country. In 2020-21, there were about 112.23 lakh SHGs which were linked with banks with 57.80 lakh SHGs having outstanding loans. The SHG members use loan for various purposes including for livelihood enhancement. Importance of SHGs has also been realised in forestry conservation programmes. The current paper discusses the role of SHGs and its contribution to livelihood change among forest dwellers in Gujarat. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220018 SHG-Bank Linkage Programme A Case Study 2023-04-04T10:47:34+00:00 Gyanendra Rout gyanendra.rout@nabard.org The self-help group - bank linkage programme (SBLP) and microfinance institutions (MFIs) are the two models of microfinance delivery in India. The SBLP covers about 56% of all microfinance space, and the remaining 44% are enveloped by MFIs. This study examined various relevant aspects of SBLP with respect to Dhenkanal district of Odisha, as a case study. All of the sample SHG members had opened savings bank accounts in their respective banks and believed that SHGs were useful for promoting savings and availing bank loans. More than 80% of them availed repeat loans. Above 90% of the loan amount were largely utilised for productive purposes in existing household economic activities. At the branch level, SHG’s saving balance was more than 30% of SHG outstanding loans. More than 40% of savings-linked SHGs had not availed credit from their respective branches because of their unwillingness to avail loan. Non availability of regular and timely interest subvention was one of the reasons for their unwillingness to avail bank loans. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220019 Empowerment of Women through Financial Inclusion under the Self-Help Group Programme in Telangana 2023-04-04T10:47:34+00:00 Neeli Deepa drdeeparammohan@gmail.com A country like India where the majority of the population is from the rural areas, the comprehensive financial inclusion of the population, especially of the poor and disadvantaged segments of the society, is considered a pre-condition for inclusive growth. Over the years, various institutional arrangements and financial inclusion models have been adopted such as agricultural credit cooperatives, bank nationalisation, regional rural banks, etc., which form important segments of rural financing system. Even though the institutional share in the total rural credit has increased over the years, there is still a large credit gap due to the formal processes, procedures and systems of the financial institutions. In addition, some segments of the population are even now deprived quite unaware about the advantages of the formal rural credit system. Studies do suggest that the rural poor are largely continuing to access finance from the local informal sources to carry out economic activities. Though self-help groups (SHGs) do provide a comprehensive pathway for financial inclusion, specially of women, there is a dire need to provide SHGs a smoother route to microcredit. In view of the importance of inclusion of women in various economic activities, this study was undertaken amongst women who had been members of SHGs in Adilabad, Mahabubnagar and Ranga Reddy districts of Telangana to understand how they perceived being empowered on various parameters. It finds that institutional training has helped women in enhancing their existing skills, and a majority of women have attained individual empowerment after joining the programme. 2022-12-01T00:00:00+00:00 https://www.i-scholar.in/index.php/Microfinance/article/view/220020 Empowering the Masses : The Phenomenal Growth and Progress of Microfinance in India 2023-04-04T10:47:34+00:00 Meenu meenusharma.dav10@gmail.com India is home to a large population of people who live below the poverty line, and whose access to financial services has traditionally been limited. Microfinance, which involves providing small loans and other financial services to low-income individuals, has emerged as a powerful tool for poverty alleviation and financial inclusion in India. In this paper, we examine the growth and progress of microfinance over the past few decades. We explore the history and evolution of microfinance, including the role of government policies and regulatory frameworks. We also examine the various models of microfinance institutions that have emerged, including self-help groups, non-banking financial companies, and microfinance banks. We analyze the impact of microfinance on the lives of low-income individuals, including women and rural populations, and assess the challenges and opportunities facing the microfinance industry. Finally, we conclude with a discussion of the future of microfinance and its potential to drive economic growth and social development. 2022-12-01T00:00:00+00:00